Empirical case study in europe and asia according to the resourcebased view, the resources of a. In addition, uses resources effectively in a dynamic environment. Using the clockspeed concept as a tool, we will argue that the design and assembly of capabilities in the supply chain is the meta or innercore competency on which firms most need to focus. Pdf supply chain management in the construction industry. A supply chain strategy should be selected based on the characteristics of the product and. A well designed and operated supply chain is very important in terms of being able to supply both internal and external customers on time and in full and add value to these. Yet these lowcost benefits are eroding through a combination of cost. Influencers are higherlevel considerations such as the business and political environment, the business model employed, the firms desired outcomes and the supply chain life cycle.
Taxation labour and material costs have been, for many multinationals, the initial driver of supply chain considerations in china. Stepbystep guide to sustainable supply chain management bmu. Principles for the strategic design of supply chains. A supply chain design problem comprises the decisions regarding the number and location of production facilities, the amount of capacity at each facility, the assignment of each market region to one or more locations, and supplier selection for subassemblies, components and materials chopra and meindl, 2004. In the hightech industry, operational performance is tightly connected to the supply chain performance. The perspective is focused on the practitioner who is interested in an overview of the key concepts and application of supply chain design within a global context. Supply chain design is being used to match the supply and demand under uncertainty by positioning and managing inventory effectively. Clockspeedbased strategies for supply chain design article in production and operations management 93.
Supply chains vary in size and complexity, but they all have the same goal. Supply chain strategy or design linkedin slideshare. See more ideas about supply chain, supply chain management and supply chain logistics. Product availability, lead time and cost as three major factors that define the profitability of a product line are also impacted by supply chain performance to a large extent. Designing an optimal supply chain network means the network must be able to meet the long. The importance of supply chain management strategy pls. Although the business strategy literature has historically concentrated on the individual. Architecture, design and vision vikas misra university of petroleum and energy studies, dehradun, india m. It does, however, offer insight as to the key attributes that should be adopted or addressed.
Many of the executives expressed broad concerns regarding supply chain risks. Supply chain network, locations, supplier selection and business terms, inventory and planning policy, organizational structure. Design for supply chain supply and demand chain executive. Issues, challenges, frameworks and solutions article pdf available in international journal of production research 527 april 2014 with 4,830 reads how we measure reads. Chapter 2 developing a sustainable supply chain strategy. The basics of a baked goods supply chain your business. Collaboration with supply chain partners chapter 2.
Seveneleven have chosen right supply chain strategy and right supply chain framework is decided and were achieving huge customers satisfaction along with increased supply chain performance and surplus. I worry about supply risks in general, whether its from natural disasters or things like a troubled supplier or a variety of issues with the whole supply chain risk piece, one participant said. Supply chain network design due to the significant impact that supply chain design has on the cost and service provided by a company, it is critical that managers be knowledgeable about how to optimize the flow of products and goods within their supply chain. We define a supply chain as a network including the procurement of raw materials, processing of intermediate and finished products, customization of the product for local market needs, and distribution of the product to customers. Construction supply chain management can be considered as a set of management process involves managing all kind of information and activities starting from the design stage up to the handing over. Product design for new products or requirements topic 5. Supply chain management scm has traditionally played an operational role within cement companies missing opportunities for cost reduction and value creation. Do their strategies mesh either as consistent or complementary to your own firms supply chain strategy.
This is a brief introductory tutorial that explains the methodologies applied in the rapidly. The term supply chain management crystallizes concepts about integrated planning proposed by operations research practitioners, logistics experts, and strategists over the past 40 years e. This paper discusses a framework for strategic supply chain design that rests on an assortment of conceptual approaches. Clockspeedbased strategies for supply chain design charles h fine production and operations management. Fine sloan school of management, massachusetts institute of technology, cambridge, massachusetts 029, usa this paper discusses a framework for strategic supply chain design that rests on.
Implementing supply chain strategy vaasan yliopisto. Clockspeedbased strategies for supply chain design. Strategic alignment is a necessary precursor to deployment of an effective supply. In supply chain management today, it is widely accepted that effective upstream operations drive efficiency further down the supply chain take, for instance, the degree to which suppliers are beginning to help customers reduce supply chain volatility through strategies such as vendormanaged inventories vmi and collaborative planning, forecasting and replenishment cpfr. Fine sloan school of management, massachusetts institute of technology, cambridge, massachusetts 029, usa. Resourcebased view is a complement to the traditional emphasis of industrial eco. Fulfillment strategies considering market requirements topic 4. Jeff bezos and his organization have found a way to optimize nearly every piece of the supply chain puzzle from warehousing and inventory management to delivery times and prices. Aligning your supply chain strategy with your business. A baked goods supply chain, for example, starts with raw ingredients and ends with the delivery of the product to.
Supply chain design and optimization oliver wight eame. A dynamic framework for developing supply chain strategies use the concept of technology clockspeed to identify the strategic leverage of supply chain design in your industry and to conduct a strategic assessment of endtoend chain capabilities. This manuscript does not pretend to have a precise roadmap to follow in order to achieve desired supply chain maturity and excellence. Part iii uses a processedbased approach to introduce the basic steps and approaches to designing and optimising supply chains for sustainability. The supply chain design and supply chain strategy is referred to the operational strategy in which a business or organization moves and transforms raw materials to finish goods. Pdf supply chain management assignment kassu sileyew.
Most people do not perceive a difference between supply chain strategy and supply chain management 58 percent. Manufacturing firms supply chain design is based on effective integration. Implementing supply chain strategy abstract supply chain strategy implementation is the process which merges together strategic management, supply chain management and supplier development. Examples and supply chain strategy supply chain brief. Global supply chain design extends this definition to include selection of. This paper describes emerging concepts for product and process design that include a supply chain perspective. Sultanpur a supply chain is a network of suppliers, factories, warehouses, distribution centers and retailers. Supply chain management is the overall management of all the links incorporated in the process of the production and transportation of goods and services.
The post a playbook for supply chain strategy appeared first on logistics viewpoints. Six steps to align supply chain with corporate strategy. When designing a supply chain the following steps must be followed. Supply chain strategy or design decisions about the structure of the supply chain and what processes each stage will perform strategic supply chain decisions locations and capacities of facilities products to be made or stored at various locations modes of transportation information systems supply chain design must support strategic objectives supply chain. Cooper 2000 issues in supply chain management, industrial marketing. Simon croom, professor of supply chain management at the usd school of business. But in setting supply chain strategy, youll need to look at three layers of cost. Operations and supply chain strategies the operations and supply chain strategy is a functional strategy that indicates how the structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy. Supply chains that are optimized for cost efficiency will look different than supply chains that are optimized for flexibility and responsiveness. What is supply chain strategy and how can organizations frame their decisions. Ortec delivers solutions and consulting for supply chain planning from strategic to operational level. Current supply chain strategies are still fairly new.
Supply chain management in the global context bpl universitat. Most respondents report that their current supply chain strategy was adopted within the last two years 33 percent, or within the past three to five years 30 percent. Wettbewerbsvorsprung durch supply chain management. This step is where you address the elements of supply chain design. Fisher 3 categorized products as either functional or innovative, depending on.
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